Mbuna

Bond Market's Initial Reaction to Fed Move Was Wrong

Hmmm, I seem to remember Roubini suggesting there was another half trillion dollars of CDS to be unwound very soon (end of the quarter?) and there's plenty more where that came from. I would think that whatever the Fed prints up will not be equal to the bad debts from the CDS craps games and the mortgage securities roulette wheels. Yes the Fed can effect the markets to a degree but really they are girding themselves for the onslaught yet to come. Yes those banks really are insolvent and it's not going to be pretty.